Receives nod from SEBI
Gland Pharma has received capital markets regulator Sebi’s go-ahead to launch an initial public offer that includes fresh issue of shares worth up to Rs 1,250 crore.
Apart from the fresh issue, there is an offer for sale (OFS) of a little over 3.4 crore shares as part of the initial public offering. The Hyderabad-based company, backed by China’s Fosun Pharma, develops, manufactures and markets complex injectables.
The company filed draft papers in July and obtained Sebi’s observation on October 19 to float an IPO. Sebi’s observation is necessary for any company to launch public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
Going by the draft papers, the IPO comprises fresh shares worth up to Rs 1,250 crore and OFS of up to 3,48,63,635 shares. The latter includes sale of up to 1,93,68,686 shares by Fosun Pharma Industrial, 1,00,47,435 shares by Gland Celsus Bio Chemicals, 35,73,014 shares by Empower Discretionary Trust and 18,74,500 shares by Nilay Discretionary Trust. According to investment banking sources, the IPO would be worth over Rs 5,000 crore.
This could probably be the first big Indian company with a Chinese parent to go for public listing.
The company’s promoters are Fosun Singapore and Shanghai Fosun Pharma. The proceeds from the fresh issue of shares will be utilised for working capital, capital expenditure and general corporate purposes, as per the draft papers.
Gland Pharma was founded by PVN Raju in 1978 and Fosun Pharma acquired 74 per cent stake in the company in 2017.
Shares of the company are proposed to be listed on the BSE and the NSE. Kotak Mahindra Capital Company, Citigroup Global Markets India, Haitong Securities India and Nomura Financial Advisory and Securities (India) are the book running lead managers to the IPO.